11 U.S.C. § 541 : US Code - Section 541: Property of the estate

Search 11 U.S.C. § 541 : US Code - Section 541: Property of the estate

(a) The commencement of a case under section 301, 302, or 303 of
this title creates an estate. Such estate is comprised of all the
following property, wherever located and by whomever held:
(1) Except as provided in subsections (b) and (c)(2) of this
section, all legal or equitable interests of the debtor in
property as of the commencement of the case.
(2) All interests of the debtor and the debtor's spouse in
community property as of the commencement of the case that is -
(A) under the sole, equal, or joint management and control of
the debtor; or
(B) liable for an allowable claim against the debtor, or for
both an allowable claim against the debtor and an allowable
claim against the debtor's spouse, to the extent that such
interest is so liable.
(3) Any interest in property that the trustee recovers under
section 329(b), 363(n), 543, 550, 553, or 723 of this title.
(4) Any interest in property preserved for the benefit of or
ordered transferred to the estate under section 510(c) or 551 of
this title.
(5) Any interest in property that would have been property of
the estate if such interest had been an interest of the debtor on
the date of the filing of the petition, and that the debtor
acquires or becomes entitled to acquire within 180 days after
such date -
(A) by bequest, devise, or inheritance;
(B) as a result of a property settlement agreement with the
debtor's spouse, or of an interlocutory or final divorce
decree; or
(C) as a beneficiary of a life insurance policy or of a death
benefit plan.
(6) Proceeds, product, offspring, rents, or profits of or from
property of the estate, except such as are earnings from services
performed by an individual debtor after the commencement of the
case.
(7) Any interest in property that the estate acquires after the
commencement of the case.
(b) Property of the estate does not include -
(1) any power that the debtor may exercise solely for the
benefit of an entity other than the debtor;
(2) any interest of the debtor as a lessee under a lease of
nonresidential real property that has terminated at the
expiration of the stated term of such lease before the
commencement of the case under this title, and ceases to include
any interest of the debtor as a lessee under a lease of
nonresidential real property that has terminated at the
expiration of the stated term of such lease during the case;
(3) any eligibility of the debtor to participate in programs
authorized under the Higher Education Act of 1965 (20 U.S.C. 1001
et seq.; 42 U.S.C. 2751 et seq.), or any accreditation status or
State licensure of the debtor as an educational institution;
(4) any interest of the debtor in liquid or gaseous
hydrocarbons to the extent that -
(A)(i) the debtor has transferred or has agreed to transfer
such interest pursuant to a farmout agreement or any written
agreement directly related to a farmout agreement; and
(ii) but for the operation of this paragraph, the estate
could include the interest referred to in clause (i) only by
virtue of section 365 or 544(a)(3) of this title; or
(B)(i) the debtor has transferred such interest pursuant to a
written conveyance of a production payment to an entity that
does not participate in the operation of the property from
which such production payment is transferred; and
(ii) but for the operation of this paragraph, the estate
could include the interest referred to in clause (i) only by
virtue of section 365 or 542 of this title;
(5) funds placed in an education individual retirement account
(as defined in section 530(b)(1) of the Internal Revenue Code of
1986) not later than 365 days before the date of the filing of
the petition in a case under this title, but -
(A) only if the designated beneficiary of such account was a
child, stepchild, grandchild, or stepgrandchild of the debtor
for the taxable year for which funds were placed in such
account;
(B) only to the extent that such funds -
(i) are not pledged or promised to any entity in connection
with any extension of credit; and
(ii) are not excess contributions (as described in section
4973(e) of the Internal Revenue Code of 1986); and
(C) in the case of funds placed in all such accounts having
the same designated beneficiary not earlier than 720 days nor
later than 365 days before such date, only so much of such
funds as does not exceed $5,000;
(6) funds used to purchase a tuition credit or certificate or
contributed to an account in accordance with section 529(b)(1)(A)
of the Internal Revenue Code of 1986 under a qualified State
tuition program (as defined in section 529(b)(1) of such Code)
not later than 365 days before the date of the filing of the
petition in a case under this title, but -
(A) only if the designated beneficiary of the amounts paid or
contributed to such tuition program was a child, stepchild,
grandchild, or stepgrandchild of the debtor for the taxable
year for which funds were paid or contributed;
(B) with respect to the aggregate amount paid or contributed
to such program having the same designated beneficiary, only so
much of such amount as does not exceed the total contributions
permitted under section 529(b)(7) of such Code with respect to
such beneficiary, as adjusted beginning on the date of the
filing of the petition in a case under this title by the annual
increase or decrease (rounded to the nearest tenth of 1
percent) in the education expenditure category of the Consumer
Price Index prepared by the Department of Labor; and
(C) in the case of funds paid or contributed to such program
having the same designated beneficiary not earlier than 720
days nor later than 365 days before such date, only so much of
such funds as does not exceed $5,000;
(7) any amount -
(A) withheld by an employer from the wages of employees for
payment as contributions -
(i) to -
(I) an employee benefit plan that is subject to title I
of the Employee Retirement Income Security Act of 1974 or
under an employee benefit plan which is a governmental plan
under section 414(d) of the Internal Revenue Code of 1986;
(II) a deferred compensation plan under section 457 of
the Internal Revenue Code of 1986; or
(III) a tax-deferred annuity under section 403(b) of the
Internal Revenue Code of 1986;
except that such amount under this subparagraph shall not
constitute disposable income as defined in section
1325(b)(2); or
(ii) to a health insurance plan regulated by State law
whether or not subject to such title; or
(B) received by an employer from employees for payment as
contributions -
(i) to -
(I) an employee benefit plan that is subject to title I
of the Employee Retirement Income Security Act of 1974 or
under an employee benefit plan which is a governmental plan
under section 414(d) of the Internal Revenue Code of 1986;
(II) a deferred compensation plan under section 457 of
the Internal Revenue Code of 1986; or
(III) a tax-deferred annuity under section 403(b) of the
Internal Revenue Code of 1986;
except that such amount under this subparagraph shall not
constitute disposable income, as defined in section
1325(b)(2); or
(ii) to a health insurance plan regulated by State law
whether or not subject to such title;
(8) subject to subchapter III of chapter 5, any interest of the
debtor in property where the debtor pledged or sold tangible
personal property (other than securities or written or printed
evidences of indebtedness or title) as collateral for a loan or
advance of money given by a person licensed under law to make
such loans or advances, where -
(A) the tangible personal property is in the possession of
the pledgee or transferee;
(B) the debtor has no obligation to repay the money, redeem
the collateral, or buy back the property at a stipulated price;
and
(C) neither the debtor nor the trustee have exercised any
right to redeem provided under the contract or State law, in a
timely manner as provided under State law and section 108(b);
or
(9) any interest in cash or cash equivalents that constitute
proceeds of a sale by the debtor of a money order that is made -
(A) on or after the date that is 14 days prior to the date on
which the petition is filed; and
(B) under an agreement with a money order issuer that
prohibits the commingling of such proceeds with property of the
debtor (notwithstanding that, contrary to the agreement, the
proceeds may have been commingled with property of the debtor),
unless the money order issuer had not taken action, prior to the
filing of the petition, to require compliance with the
prohibition.
Paragraph (4) shall not be construed to exclude from the estate any
consideration the debtor retains, receives, or is entitled to
receive for transferring an interest in liquid or gaseous
hydrocarbons pursuant to a farmout agreement.
(c)(1) Except as provided in paragraph (2) of this subsection, an
interest of the debtor in property becomes property of the estate
under subsection (a)(1), (a)(2), or (a)(5) of this section
notwithstanding any provision in an agreement, transfer instrument,
or applicable nonbankruptcy law -
(A) that restricts or conditions transfer of such interest by
the debtor; or
(B) that is conditioned on the insolvency or financial
condition of the debtor, on the commencement of a case under this
title, or on the appointment of or taking possession by a trustee
in a case under this title or a custodian before such
commencement, and that effects or gives an option to effect a
forfeiture, modification, or termination of the debtor's interest
in property.
(2) A restriction on the transfer of a beneficial interest of the
debtor in a trust that is enforceable under applicable
nonbankruptcy law is enforceable in a case under this title.
(d) Property in which the debtor holds, as of the commencement of
the case, only legal title and not an equitable interest, such as a
mortgage secured by real property, or an interest in such a
mortgage, sold by the debtor but as to which the debtor retains
legal title to service or supervise the servicing of such mortgage
or interest, becomes property of the estate under subsection (a)(1)
or (2) of this section only to the extent of the debtor's legal
title to such property, but not to the extent of any equitable
interest in such property that the debtor does not hold.
(e) In determining whether any of the relationships specified in
paragraph (5)(A) or (6)(A) of subsection (b) exists, a legally
adopted child of an individual (and a child who is a member of an
individual's household, if placed with such individual by an
authorized placement agency for legal adoption by such individual),
or a foster child of an individual (if such child has as the
child's principal place of abode the home of the debtor and is a
member of the debtor's household) shall be treated as a child of
such individual by blood.
(f) Notwithstanding any other provision of this title, property
that is held by a debtor that is a corporation described in section
501(c)(3) of the Internal Revenue Code of 1986 and exempt from tax
under section 501(a) of such Code may be transferred to an entity
that is not such a corporation, but only under the same conditions
as would apply if the debtor had not filed a case under this title.